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U.S. NEWS Wednesday 13 april 2022
U.S. allies aim to force Russia to shift money away from war

By FATIMA HUSSEIN to go after the military de- ing American Rescue Plan
Associated Press vices that have been built dollars to help people pay
WASHINGTON (AP) — The to use not only in Ukraine, their rent. Overall, he said,
United States and its allies but to project power else- "we've seen 80% applied
are pushing ahead with where." towards low income house-
sanctions aimed at forc- "What that means practi- holds, 40% to African Amer-
ing Vladimir Putin to spend cally is that with less money, ican households and 20%
Russia's money propping Russia will have less money to Latinx households."
up its economy rather than to invest in their military," he He said it was imperative
sustaining its "war machine" said. that remaining relief money
for the fight in Ukraine, a Adeyemo said Putin re- under the program be used
top Treasury Department cently admitted that the to help small businesses, in-
official said Tuesday. Russian economy was go- cluding through the State
Deputy Treasury Secretary ing to have to transform. Small Business Credit Initia-
Wally Adeyemo, one of the Adeyemo interpreted that tive, which allows states to
main U.S. coordinators on to mean that "the Russian increase access to credit
the Russian sanctions strat- economy is less flexible, it's for small businesses.
egy, said in an interview smaller, it's less able to proj- "Lots of communities are
with The Associated Press ect power into the future." Deputy Treasury Secretary Wally Adeyemo speaks during an in- thinking through ways to
terview in his office at the Treasury Department in Washington,
that the goal is to make Adeyemo's work includes Tuesday, April 12, 2022. not only use the money to
Russia "less able to project coordinating with U.S. al- Associated Press address the immediate cri-
power in the future." lies to develop thousands sis, but how they build their
On the same day that infla- of unprecedented sanc- lated economic recovery sary this week. communities better into the
tion notched its steepest in- tions on Russia's leadership through Treasury's Office of Adeyemo said he had re- future in order to make sure
crease in decades, Adey- and its Central Bank, which Recovery Programs, which cently visited Memphis to that people have econom-
emo said reducing supply is intended to cripple the marks its one year anniver- see how the city was us- ic opportunity," he said.q
chain backlogs and man- country's financial system.
aging the pandemic are Germany in particular fac-
key to bringing down soar- es international pressure to
ing prices that he related curb its business ties with
to the ongoing land war in Russia, which provides the
Ukraine, which has contrib- European superpower with
uted to rising energy costs. natural gas.
"Let's be clear that the in- "Our German counterparts
crease in energy prices was and my European counter-
caused by President Putin's parts in general are working
invasion, and we're going as hard as possible to make
to continue to see volatility plans to get off of Russian
in those markets as long as energy as quickly as pos-
President Putin continues sible, including last week's
his illegitimate invasion of announcement that they
Ukraine," he said. He add- were going to ban Rus-
ed that the Biden adminis- sian coal in the near term,"
tration was "committed to Adeyemo said. "And our
doing everything we can expectation is that they're
to lower the cost of energy going to take these steps."
for the American people." In the U.S., the economy
As Treasury Secretary Janet has proven to be a struggle
Yellen's No. 2, Adeyemo for the Biden administra-
is tasked with developing tion as the strong job gains
a sanctions strategy that of the past year have also
many economists have yielded the worst inflation
equated to economic war- in more than four decades.
fare with Russia. He's also The Labor Department re-
leading Treasury's efforts to ported Tuesday that prices
rebuild the American econ- in March climbed 8.5% from
omy from the pandemic a year ago, the steepest
with equity at the fore. increase since December
Adeyemo discussed the 1981.
next steps the U.S. and its While inflation began to
allies will take to inflict fi- increase before Russia in-
nancial pain on Russia — vaded the Ukraine, the
and the complications the war has strained supplies
war has on rising costs to of oil and gasoline. Half of
Americans back home. the past month's increase
The U.S. and its allies will in consumer prices came
next target the supply from gas.
chains that contribute to This economic volatility is
the construction of Russia's a challenge to other work
war machine, Adeyemo that Adeyemo is tasked
said, which includes "every- with for Treasury — leading
thing from looking at ways an equitable pandemic-re-